WANdisco has announced plans to cut around 30% of its global workforce as the scandal-hit firm deals with the fallout of recent fraud allegations.
In a statement today, the data firm said it will undertake a “reorganization and review process” that will result in significant job cuts across its global operations.
The cloud migration specialist currently has more than 150 employees spread across several regions worldwide, with offices located in Sheffield, Belfast, Newcastle, San Francisco, South Korea, and Australia.
Proposed layoffs will apply to “all areas of the company’s operational and geographic footprint”, WANdisco revealed in its statement. The firm said that it is currently in consultation with affected staff.
WANdisco said the motivation for the cuts follows a “detailed review of the business which indicated the need for difficult but necessary changes to the company’s size” to ensure long-term growth.
“The proposal to reduce the company’s overall headcount was considered at great length,” said Kenneth Lever, executive chairman at WANdisco.
“Regrettably, the proposed action is a necessary step to responsibly position WANdisco for long-term growth.”
“We are working through the process as sensitively and supportively as we can, providing those directly impacted with as much information and support as possible and at all times in full compliance with local law.”
WANdisco fraud allegations
The decision to impose staff cuts follows a period of disruption at WANdisco in which the company has been accused of fraudulent activity.
In early April, CEO and co-founder David Richards MBE and chief financial officer Erik Miller stepped down.
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The shock announcement came in the wake of an ongoing investigation into fraud allegations.
The investigation was prompted by the discovery of financial irregularities in March this year.
An external probe into company finances revealed that revenue figures published in its previous quarterly report were inaccurate.
Annual revenue figures for 2022 had previously been reported to be around $24 million. However, the investigation found that this was in fact $9.7 million.
Sales figures were also allegedly inflated in the inaccurate reports, having been $11.4 million compared to $127 million previously.
At the time, WANdisco suggested that a single employee was responsible for the false revenue figures, according to reports from Reuters.
The Sheffield-headquartered firm also denied any connection between the April leadership shake-up and the allegations.
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